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#51
Discussion / Four important legal queries a...
Last post by subash agarwal - April 29, 2020, 09:28:20 PMhttps://subashagarwal.blogspot.com/search/label/FROM%20MY%20ARCHIVES-%20USEFUL%20ITAT
Visit the link above to find answer to the following queries-
a) Can the view taken by the AO be considered to be erroneous when the AO had failed to make inquiries during assessment proceedings though the issues raised by the CIT during sec 263 proceedings are covered by the decision of the Supreme Court ?
b) Where the AO found that books of account were not properly maintained, can he make pin pointed additions u/s 68/69 etc and not reject books to avoid making a lower estimated G.P addition ?
c) Can the assessee being a body corporate claim establishment expenses despite having no business activity ?
d) Where the assessee has not offered capital gains to tax in the year of signing of agreement to sale , can the same be charged to tax in the year of registration of sale deed ?
Visit the link above to find answer to the following queries-
a) Can the view taken by the AO be considered to be erroneous when the AO had failed to make inquiries during assessment proceedings though the issues raised by the CIT during sec 263 proceedings are covered by the decision of the Supreme Court ?
b) Where the AO found that books of account were not properly maintained, can he make pin pointed additions u/s 68/69 etc and not reject books to avoid making a lower estimated G.P addition ?
c) Can the assessee being a body corporate claim establishment expenses despite having no business activity ?
d) Where the assessee has not offered capital gains to tax in the year of signing of agreement to sale , can the same be charged to tax in the year of registration of sale deed ?
#52
Discussion / Ten escape routes from the mis...
Last post by subash agarwal - April 27, 2020, 09:51:05 PMhttps://subashagarwal.blogspot.com/search/label/Sec.14A%20r.w%20Rule%208D
Ten escape routes from the mischief of sec 14A r.w Rule 8D ( Part II )
Second and concluding part of the write up providing ready reference to the relevant and latest case-laws on the subject
Ten escape routes from the mischief of sec 14A r.w Rule 8D ( Part II )
Second and concluding part of the write up providing ready reference to the relevant and latest case-laws on the subject
#53
Discussion / Ten escape routes from the mis...
Last post by subash agarwal - April 26, 2020, 11:28:43 PMhttps://subashagarwal.blogspot.com/search/label/Sec.14A%20r.w%20Rule%208D
Ten escape routes from the mischief of sec 14A r.w Rule 8D ( Part I )
This write up in two partes will provide ready reference to the relevant and latest case-laws on the subject
Ten escape routes from the mischief of sec 14A r.w Rule 8D ( Part I )
This write up in two partes will provide ready reference to the relevant and latest case-laws on the subject
#54
Discussion / Recent unreported useful ITAT ...
Last post by subash agarwal - April 25, 2020, 12:15:50 AMhttps://subashagarwal.blogspot.com/search/label/FROM%20MY%20ARCHIVES-%20USEFUL%20ITAT
Recent ITAT Kolkata decisions which may be useful
Recent ITAT Kolkata decisions which may be useful
#55
Discussion / Re: Income tax question? How i...
Last post by sai prasad - April 06, 2020, 11:30:43 AMthe statutory obligation cast u/s 139(1) on any one earning income exceeding taxable minimum has to file return of income.if one fails he runs the risk. if he files he can plan the matters. it is not the department which has to keep track but the person who earns taxable income to comply with the legal provisions otherwise face the consequences.
#56
Discussion / Income tax question? How is th...
Last post by johnwalker1 - April 04, 2020, 07:55:24 PMAs you would all be aware that there would be many teachers, retired teachers and in some cases older students or home makers who would supplement income through tuition.
I just realized that many of them don't file IT for it.
In one such case, there was a home maker who used to give math tuition for 7-10 grade. There were 2 batches for each (weekend and weekdays): 1-1.5 hours (3 days or 2 days). Each batch had 4-6 students. The costs were from 500 to 1200 a month per student.
Thus if there were 5 students, 2 batches each, 4 grades (7,8,9,10) with a conservative average of 700 rupees a month:
This works out to 5*2*4*700 = 28,000 a month.
The overhead was nothing: old books, home as the center, white board and some regular ink supply.
If my understanding is correct, they would plug this in with the monthly financial requirements (groceries, transport, bills) the husbands salary is entirely saved and can be put for investment (in case of teachers, their school salary)
I've seen this being the case for so many years and so many times, it seems to be working like a well oiled machine with no one catching up or consequences!
How does this work out without the I-T department catching up on it? (i'm just curious as to how it works out)
I just realized that many of them don't file IT for it.
In one such case, there was a home maker who used to give math tuition for 7-10 grade. There were 2 batches for each (weekend and weekdays): 1-1.5 hours (3 days or 2 days). Each batch had 4-6 students. The costs were from 500 to 1200 a month per student.
Thus if there were 5 students, 2 batches each, 4 grades (7,8,9,10) with a conservative average of 700 rupees a month:
This works out to 5*2*4*700 = 28,000 a month.
The overhead was nothing: old books, home as the center, white board and some regular ink supply.
If my understanding is correct, they would plug this in with the monthly financial requirements (groceries, transport, bills) the husbands salary is entirely saved and can be put for investment (in case of teachers, their school salary)
I've seen this being the case for so many years and so many times, it seems to be working like a well oiled machine with no one catching up or consequences!
How does this work out without the I-T department catching up on it? (i'm just curious as to how it works out)
#57
Discussion / A reality check on tax rates
Last post by baiselmareo6 - March 28, 2020, 01:47:24 PMSo many people I know have a very poor understanding of marginal tax rates. They think that if you fall in the 20% bracket, ALL your income is taxed at 20%
Here is a reality check. In these calculations, I'm assuming that you have maximized 80c savings of 1.5L
If you make 12L/year, you would pay 1.32L as tax. Your effective tax rate is just ~11%
If you make 20L/year, you would pay 3.82L. Your effective tax rate is just 19.1%
If you make 40L/year, you would pay 10L. Your effective tax rate is just 25.1%
You would have to make 60L/year to get close to 30% tax rate
If you're making 60L per year, you're well off in most of the world (barring outliers like San Francisco) and fabulously well off in India. Does 30% tax rate really hurt you that much?
I'm personally within this tax range and I don't mind paying the money. It's a standard practice across the world for independent contractors like me to keep 30% of any money made aside for taxes.
Keep this in mind. The last majority of people would cap out under 20% tax rate
Here is a reality check. In these calculations, I'm assuming that you have maximized 80c savings of 1.5L
If you make 12L/year, you would pay 1.32L as tax. Your effective tax rate is just ~11%
If you make 20L/year, you would pay 3.82L. Your effective tax rate is just 19.1%
If you make 40L/year, you would pay 10L. Your effective tax rate is just 25.1%
You would have to make 60L/year to get close to 30% tax rate
If you're making 60L per year, you're well off in most of the world (barring outliers like San Francisco) and fabulously well off in India. Does 30% tax rate really hurt you that much?
I'm personally within this tax range and I don't mind paying the money. It's a standard practice across the world for independent contractors like me to keep 30% of any money made aside for taxes.
Keep this in mind. The last majority of people would cap out under 20% tax rate
#58
Discussion / Re: Loss on sale of pledged sh...
Last post by vopima2188 - February 22, 2020, 07:07:46 PMQuote from: sanganeriask on December 05, 2018, 01:05:08 PM
my client had pledged some listed shares to a financial institution for availing a loan. On failure to repay the loan the lender invoked the pledged shares and sold the shares thru stock exchange in their name and credited the proceeds in the loan account. My query is that whether the loss incurred on such sale is allowable to be set off with capital gain arising on sale of other shares on which STT is not paid.
Hi buddy, following up on this. Did you get any update regarding this?
Regards,
V. Smith
#59
Collection of important & evergreen judgements, circulars, articles etc / Section 115BAC Option of New T...
Last post by sujittalukder - February 11, 2020, 11:59:19 PMAfter the introduction of new section 115BAC on the new taxation regime for Individuals, there is confusion on whether the employer should deduct the income tax from the salary income as per the old regime or as per the new regime. How the employee will decide the option at the beginning of the year? Does the employee need to communicate his option to the employer? And so on.
https://www.taxcorner.co.in/2020/02/section-115bac-option-of-new-tax-to-employee-and-tds-by-employer.html
Read the clarification from the CBDT on the matter here-
https://www.taxcorner.co.in/2020/04/cbdt-issues-circular-to-clarify-option-under-section-115bac-and-tds-by-employer.html
https://www.taxcorner.co.in/2020/02/section-115bac-option-of-new-tax-to-employee-and-tds-by-employer.html
Read the clarification from the CBDT on the matter here-
https://www.taxcorner.co.in/2020/04/cbdt-issues-circular-to-clarify-option-under-section-115bac-and-tds-by-employer.html
#60
Discussion / Re: Interview calls for the po...
Last post by vijih - February 07, 2020, 07:31:13 PMQuote from: Ashish kumar on May 07, 2019, 09:01:42 PM
On 6th July 2018, the Ministry of law and Justice issued a Notification, by virtue of which it has invited applications from professionals for the post of ITAT Members. As per this Notification the members who have completed 10 years of profession and have age between 35 to 50 are entitled for the post of member after facing an interview.
In response to this advertisement around 750 applications were received out of which 600 candidates have been shortlisted for interview.
Now on 3rd May a new development has happened that is only 150 candidates have been filtered out of 600. When the undersigned has enquired the things from reliable sources then it is emerge that only those candidates who have completed 20 years of profession and have some reasonable income are being called for interview. And the rest of the professionals have been out rightly rejected. Now my question to the legal luminaries of the Bar, a bar which has been founded by Great Shri Nani Palkhiwala, that is not injustice to those candidates whose candidature has been rejected out rightly without any interview. Whether it is not violation of fundamental rights of the professional who are eligible as per the provisions of Act and Rules of ITAT.
My humble request is that necessary action in this regard may be initiated otherwise days are not far when only revenue side and judicial services side persons would be appointed. And no body aware that under GST, the area where I am practicing, the new provisions have no space for advocates or CA. Similarly slowly and gradually this practice would come under Income Tax Tribunal also and then only God knows what would happen to a poor assessee who visit ITAT in hope of justice. Since I am a Chartered accountant and not possessing much knowledge of law. I don't know where the remedy lies
Thank you and Jai Hind